Wednesday, July 6, 2016

There are several
basic rules of fundraising that all startups should keep in mind

1. Know your investors—it’s
important to know what kind of investor you are looking for and what those
investor wants to see in your deal. Many
startups fail to understand what the investors are looking for and end up
without a followup meeting after the pitch.

2. Educate your investors--after
you pitch the investor it’s important to educate the investor through updates
about your deal. It’s often the case the
investor is unfamiliar with your application or space.

3. Build trust—demonstrate
that you can be trusted by showing examples of how you’ve performed in the past.

4. Respect your investors—show
respect to the investor and don’t take their time and advice for granted. When investors see their feedback and advice
is not followed up, they turn their attention elsewhere.

5. Focus on current
supporters—make sure you keep your current investor and investor prospects
updated on your startup. If you don’t articulate progress in your deal, the
investor will most likely not know.